CIO & LEADER-November 2017 (1)

Insight
FFour out of five respondents (81%) in a recent
survey said security is an important factor while
considering online payments. This is similar across
the board - gender, ages, household income and even
education levels.
The study, conducted by Visa, observed high
inclination amongst Indian consumers (78%) in
favour of adopting newer modes of digital payments,
indicating increased awareness, acceptance
and adoption of digital forms of payments among
Indian consumers.
One of the factors that surfaced as the key driver
of this adoption was the ease of transition to digital
form factors of payments, as stated by 86% of the
respondents. Amongst those who have used lesscash
currently than before, 70% state that the main
reasons to transit away from cash include – convenience,
efficiency and speed of transaction offered
by digital modes.
This survey was aimed at understanding the
pulse of the Indian consumer and their views
towards the transition to a digital economy. The
study indicates that amongst people for whom this
transition was tough:
41% find that merchants they go to only
accept cash
39% are worried about the security of their
transactions.
52% find insufficient modes of payments as a
key barrier.
Visa, the world’s leader in digital payments,
today announced an independent study, examining
the consumer sentiment around digital payments
in India.
The survey also shows that millennials are more
likely to use digital payments for everyday essentials
like shopping at supermarkets, online, department
stores, fast food restaurants, taxis/cabs etc.
than other generations. The study also shows that
the inclination towards embracing digital is higher
amongst those from a higher income household.
Cash vs Digital Payments in India
34%
33%
36%
31%
2016 2017 2018
Cash
Digital
39%
25%
Source: Visa
“More and more consumers are becoming digital
natives, expecting a differentiated experience, oriented
towards convenience and practical usability.
IoT, contactless payment technology, enabling simplified,
secure and faster eCommerce experience
are some of the trends defining the next wave of the
future of payments. The study shows that while
consumers are steadily embracing digital payments,
they are also seeking secure payment forms,” says
TR Ramachandran, Group Country Manager, Visa,
India & South Asia.
According to the survey, cash usage continues to
decline marginally from around 33% last year, to
31% currently, and is expected to come down further
to around 25% over next 12 months. On the contrary,
digital payment forms like card usage continues see
uptake, rising from around 34% last year to over
36% currently, and likely to touch 39% in next 12
months. The numbers from the survey indicate a
marginal impact of demonetization.
The research probed over 2000 people across
the Indian Subcontinent. Commissioned by Visa,
the online survey was conducted independently
by YouGov to find out the sentiment of the consumer
adoption of digital payments and user habits
in the region
November 2017 | CIO&LEADER
17